Maharashtra and NCR Take in Over 50% of India’s FDI Inflows

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Nov. 18 – Over half of the foreign direct investment coming into India from April through August went to the eastern state of Maharashtra and the National Capital Region (NCR), according to recently released data from the commerce and industry ministry.

Maharashtra, India’s richest state and home of the nation’s financial capital Mumbai, was the most attractive region over the first five months of this fiscal, accounting for 35 percent, or US$2.43 billion, of the country’s total FDI.

India’s NCR, which encompasses all of Delhi in addition to parts of neighboring Haryana, Uttar Pradesh, and Rajasthan, was the next more attractive destination for FDI inflows, receiving 20 percent, or US$1.85 billion, in FDI over the same time horizon.

“Infrastructure in these areas has improved considerably and that is making them more attractive destinations for FDI in India,” Rakesh Joshi of the Indian Institute of Foreign Trade told The Economic Times.

Over the five months from April to August, India as a whole received US$8.8 billion in FDI, according to data from the ministry.

After Maharashtra and NCR, Karnataka in southwest India attracted the third most FDI valued at US$936 million, followed by Andhra Pradesh (US$451 million), Tamil Nadu (US$316 million), Goa (US$291 million), and Gujarat (US$230 million).

Sectors covering computer hardware and software, construction, metallurgical industries, power, services, and telecom were among the most attractive.

Mauritius contributed the most towards India’s FDI total with commitments of US$2.92 billion, followed by Singapore (US$1.08 billion), the United States (US$636 million), Japan (US$515 million), and the Netherlands (US$481 million).